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NewsBriefs

This article contains excerpts from news stories recently posted under Breaking Industry News on to align digital methodologies and
our homepage. For links to these and other full news stories, please visit www.greensheet.com/ merchant capabilities. "In order for
breakingnews.php. merchants to harness the benefits of
diverse payment methods for their
customers, it is vital that the new
forms of purchasing experiences
that are emerging are met with an
omnichannel and fluid approach
Tracking consumer payment preferences and platforms capable of simplifying
multiple payments for merchants,"
A new report from the Federal Reserve Bank of San Francisco revealed cash usage Bocca said.
increased slightly in 2021. In October 2021, the monthly average number of cash
payments per consumer increased to seven, from six one year earlier, according Biometrics replacing cards, smart
to 2022 Findings from the Diary of Consumer Payment Choice. This marked the first devices at checkout
time the San Francisco Fed recorded an increase in cash usage since the diary's
inception in 2016. "The 2021 increase after [a] seven-percentage-drop in cash The card brands are preparing for
the next iteration of contactless
share in the first Covid-19 year could imply that consumers' transactional use
of cash may have reached its floor during the pandemic," wrote Emily Cubides payments—when a smile or wave of
the hand is all it takes to complete
and Shaun O'Brien of the San Francisco Fed.
payment. Mastercard revealed a new
Studies expose gaps in digital commerce Biometric Checkout program, a "first-
of-its-kind technology framework"
Separate studies by Axerve and Arkose Labs highlight the need for security to pave the way for biometric
and payments orchestration as retailers rush to support multiple checkout payments at stores large and small.
options at all points of interaction. Axerve's New technologies and trends in The program outlines standards for
digital payments in 2022 assesses digital commerce's impact on merchants. banks, merchants and technology
Alessandro Bocca, CEO of Axerve, stated the white paper underscores a need companies to follow to ensure
security and privacy of personal data
when consumers pay biometrically.
Mastercard said it is working with
a half dozen technology partners
to advance biometric payments,
including the Brazilian startup
Payface.

Fed pilots instant payments
framework

The Federal Reserve is piloting its
new payments initiative, FedNow,
with an eye toward making instant
payments a reality beginning in 2023.
A few organizations have connected
and delivered text messages over a
pilot version of FedNow, laying the
groundwork for full-scale, end-to-
end testing later this year, the Fed
said in a statement. More than 120
organizations, primarily financial
institutions, have signed up for the
pilot. One notable non-FI participating
is Square Financial Services Inc.,
which the Fed said “satisfied
pilot criteria surrounding instant
payments readiness.” The Fed plays a
pivotal role in the nation’s payments
system by facilitating clearing and
settlement of transactions between
FIs and their clearing agents.

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